GAVI's innovative business model not only finances the introduction of new vaccines in developing countries but is also reshaping the vaccine market and ensuring immunisation programmes are sustainable
Effective funding mechanism
GAVI seeks to make the right vaccines available in the right amount at the right price to the world's poorest countries.
Drawing on the skills of the key players in global immunisation, the Alliance's business model has provided solutions to six challenges that have slowed the introduction of life-saving vaccines to the world's poorest children:
1. Getting immunisation on the agenda
GAVI demonstrates that investing in immunisation programmes is cost-effective and supplies the evidence that encourages governments in donor and developing countries to support the introduction of new vaccines.
2. Securing predictable financing
Immunisation programmes need donor commitment that gives developing countries the confidence to adopt new vaccines. GAVI's emphasis on innovative financing mechanisms has secured long-term, predictable financing.
3. Putting countries in charge
International aid programmes were previously often project-based with external development agencies and donors defining the agenda.
GAVI's business model is built on the premise that developing countries should set their own priorities and ensure external support fits into the broader fabric of national health plans. GAVI uses existing partnerships and networks to implement the programmes.
4. Strengthening health delivery systems
Funding vaccines does not guarantee that they will reach the children who need them. GAVI allocates 15-25% of its total funding support to cash-based programmes designed to help countries strengthen their immunisation and health services. For example: health worker training, monitoring, logistics.
5. Making vaccines affordable
Ensuring a lasting impact on the vaccine market to the benefit of the low- and lower middle-income countries underlies the GAVI business model. GAVI influences vaccine prices using several strategies:
- aggregating demand and procurement;
- encouraging competition;
- increasing transparency on vaccine demand, supply dynamics and pricing;
- encouraging a low pricing tier that allows GAVI-eligible countries to access the same product at a fraction of the price charged in high-income countries;
- ensuring countries that graduate from GAVI support continue to have access to low vaccine prices .
6. Country co-financing
To enhance country ownership of vaccine financing and set a path to financial sustainability, GAVI requires countries to contribute towards the cost of the vaccines they receive. Co-financing levels are determined by each country's ability to pay.